UK Property Market Sees Spring Surge with Record Home Choices Amid Stamp Duty Deadline Looms

New data reveals a spring resurgence in the UK housing market, driven by record property availability and a rush to beat the looming stamp duty deadline. According to Rightmove, the average price of a property coming to market has risen by 1.1 per cent or £3,867 this month, reaching £371,870. Despite this increase, new sellers are strategically pricing more realistically, moving away from the over-optimistic figures typically seen during spring.

The market’s heightened activity stems from the upcoming stamp duty threshold rollback, which is set to occur at the end of March. Introduced in September 2022, the temporary increase in thresholds provided significant savings for buyers. However, as the tax relief period concludes, tens of thousands of movers face additional costs. Rightmove indicates that an estimated 74,000 transactions, including 25,000 by first-time buyers, will miss the 31 March deadline. As a result, these buyers are expected to pay a combined total of £142 million in extra stamp duty tax.

Though this is a challenging landscape, prospective buyers benefit from the highest property choice in a decade for this time of year. Inventory levels are at their highest since 2015, offering increased options amid growing market competition. Despite global economic uncertainties, the UK property market has shown resilience. The number of sales agreed is 9 per cent higher than this time last year, while the number of new sellers listing homes has risen by 8 per cent compared to 2024.

Mortgage rates, a key affordability factor, have seen fractional declines since last year. The average five-year fixed mortgage rate sits at 4.74 per cent, down from its July 2023 peak of 6.11 per cent, though still slightly below the 4.84 per cent seen this time last year. First-time buyers and high loan-to-value borrowers are the most impacted by ongoing economic shifts and rate fluctuations, according to Rightmove’s mortgage expert. The potential for buyers to borrow more responsibly, helped by forthcoming regulatory changes, could provide some relief in the longer term.

As the chancellor Rachel Reeves prepares her spring statement on 26 March, industry experts have called for a potential short extension to the stamp duty deadline to ease the financial burden on those affected. While this remains uncertain, the Bank of England’s recent rate decisions hint at further reductions later in the year—a move anticipated to enhance buyer affordability and widen access to the property market.

Separate data by Savills indicates that the UK housing market grew by 6.3 per cent last year, adding £22.3 billion in value and reaching £379 billion. London saw its share of the market decline compared to the south-east, marking a regionally significant shift. Though the housing market’s size remains below its pandemic peak, future interest rate cuts may foster greater market confidence and strengthen buyer spending power over the coming months.